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TPD Insurance Calculator

Calculator

Calculate Total & Permanent Disability insurance needs. See how much TPD cover protects you if you can never work again due to illness or injury.

Free to useNo data storedAI insightsUpdated: February 2026

Total & Permanent Disability (TPD) insurance pays a lump sum if you become permanently unable to work due to illness or injury. Unlike income protection (which pays monthly until you recover), TPD is for worst-case scenarios — a spinal injury, severe stroke, or degenerative condition that ends your career permanently. The lump sum covers debt repayment, medical expenses, home modifications, and ongoing living costs. Most super funds include basic TPD, but it's often insufficient and uses the restrictive 'any occupation' definition.

Enter Your Details

Enter Your Details

$

Your current gross annual income

How many working years you have left

$

Mortgage, car loans, personal loans, credit cards

$

Check your super statement for default TPD cover

$

Rehabilitation, home modifications, care assistance

'Own occupation' is broader and easier to claim but costs more

Affects premium and cover calculations

Real-World Examples

Surgeon with Own Occupation TPD

Dr. Chen, 42, earns $350,000. A hand tremor develops making surgery impossible.

Under 'own occupation': Dr. Chen can claim — she can't perform surgery. Under 'any occupation': claim likely DENIED — she could work as a consultant, lecturer, or GP. This illustrates why 'own occupation' is critical for specialists.

Tradesperson with Family

Dave, 38, earns $90,000. Mortgage: $400,000. Two kids. Has $150,000 TPD in super.

Recommended TPD: debts ($400,000) + income replacement ($90,000 × 22 years discounted ≈ $1,200,000) + medical ($20,000 × 22 = $440,000) = $2,040,000. Existing: $150,000. Gap: $1,890,000. Even a $1M policy would transform his family's situation.

Frequently Asked Questions

Glossary

TPD (Total & Permanent Disability)
Insurance that pays a lump sum if you become permanently unable to work due to illness or injury.
Own Occupation
TPD definition where you're covered if you can never return to YOUR specific occupation. Broader, easier to claim.
Any Occupation
TPD definition where you're only covered if you can never do ANY job suited to your education/experience. Much harder to claim.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter your annual income and years to retirement.
  2. Add your total debts that would need to be cleared.
  3. Enter any existing TPD cover (check your super statement).
  4. Add estimated ongoing medical/care costs.
  5. Choose between 'own occupation' and 'any occupation' definitions.
  6. See your recommended TPD cover amount.
Key Information
  • 'Own occupation' TPD: pays if you can't do YOUR specific job ever again. Broader, easier to claim.
  • 'Any occupation' TPD: pays only if you can't do ANY job suited to your education/experience. Much harder to claim.
  • Super fund TPD is typically 'any occupation' and $100,000-$300,000 — often not enough.
  • TPD claims can take 6-18 months to be assessed and paid — you need income protection in the interim.
Pro Tips
  • Always choose 'own occupation' if available and affordable — 'any occupation' is extremely difficult to claim.
  • TPD through super uses 'any occupation' by default. Hold a separate 'own occupation' policy outside super for better protection.
  • Combine TPD with income protection — IP covers you monthly while the TPD claim is being assessed.
  • Review your super fund's default TPD amount — it's rarely enough to cover debts + future living costs.
Avoid These Mistakes
  • Assuming 'any occupation' TPD will pay — if you can theoretically do ANY job (even part-time retail), the claim may be denied.
  • Not having TPD at all because 'it won't happen to me' — 1 in 10 Australians will be seriously disabled before age 65.
  • Relying solely on super fund TPD — default amounts ($100-300k) rarely cover a mortgage plus 20+ years of living costs.
  • Not understanding that TPD and income protection serve different purposes — you typically need BOTH.
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